Parents in their 60s want a reverse mortgage after a heart attack — but there may be smarter moves

Parents in their 60s want a reverse mortgage after a heart attack — but there may be smarter moves shutterstock.com / Fit Ztudio Jessica Wong Mon, June 15, 2026 at 3:30 AM GMT+7 5 min read Imagine this scenario: Your parents are both in their 60s, carrying debt and trying to stay on top of bills while everyday costs keep rising. Then your dad suffers a heart attack. Suddenly, medical bills, lost income and the financial squeeze have the family searching for solutions. One option seems to come up on top: a reverse mortgage. Robert Kiyosaki says this 1 asset will surge 400% in a year and begs investors not to miss this ‘explosion’ The ultra-rich use these 5 real estate strategies to build wealth while they sleep — you can start with just $100 Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is going For many older homeowners, tapping into the equity they’ve built up over decades can seem like a lifeline. New data (1) from nonprofit financial counseling organization GreenPath Financial Wellness found that 21.1% of seniors seeking reverse mortgages in 2025 were already running monthly budget deficits, up from 12.2% a year earlier. If your parents are considering a reverse mortgage to cover costs after a health crisis, while it could be a good move, it may not be the only option available. According to the Federal Trade Commission (2), a reverse mortgage allows homeowners aged 62 and older to borrow against the equity they’ve built up in their home. Unlike a traditional mortgage, borrowers generally don’t make monthly loan payments. Instead, interest and fees are added to the loan balance over time, and the loan typically becomes due when the homeowner dies, sells the home or permanently moves out. The funds can be received as a lump sum, monthly payments or a line of credit and may be used for expenses such as debt repayment, healthcare costs or supplementing retirement income. For families dealing with a sudden health crisis, such as a heart attack or other serious illness, that extra cash flow can be very appealing. But a reverse mortgage doesn’t magically get rid of all housing costs. Homeowners still have to pay property taxes, homeowners insurance, maintenance expenses and other housing-related costs. The GreenPath data could suggest that many seniors are opting for reverse mortgages because they have run out of other options. The findings paint a picture of retirees struggling with rising housing costs, healthcare expenses and everyday bills, even while sitting on substantial home equity. So while the loan might help with an immediate cash-flow problem, it doesn’t necessarily fix an underlying budget shortfall. There’s also the long-term impact to think about. Reverse mortgages reduce the amount of home equity available in the future and can leave less wealth to pass on to any heirs, according to the Consumer Financial Protection Bureau (3). If you’re considering a reverse mortgage, it’s important to think about whether it addresses the root problem or simply buys more time. Read More: About 1 in 5 Americans over 50 has zero retirement savings — here s the catch-up plan you can actually use Before signing up for a reverse mortgage, it may be worth considering a few other ways to ease the financial squeeze. Many retirees are still living in houses that made sense when the kids were growing up, but now come with hefty property taxes, utility bills and maintenance costs. Moving to a smaller home could unlock equity while cutting monthly expenses at the same time. Depending on their financial situation, the parents in a situation like this one may be able to access home equity through an option such as a home equity line of credit (4). Options such as this generally come with monthly payments, so the costs should be reviewed over the long run. If credit cards or other debts are the main problem, a credit counselor (5) may be able to help negotiate with creditors, lower payments or create a realistic plan to get finances back on track. According to the National Council on Aging (6), many older Americans could be missing out on government programs that help cover healthcare costs, prescription drugs, utility bills and other essentials. It’s worth reviewing your benefits which could uncover savings that ease the pressure on their budget. In this situation, if a parent’s heart attack affects their ability to work, they may qualify for disability benefits (7) through Social Security or other forms of financial support that could help replace lost income. While a reverse mortgage could provide much-needed cash, it’s important not to think of it as a cure-all. For retirees who are determined to stay in their homes, it can be a valuable tool. But for many older homeowners who may be struggling with debt, rising healthcare bills and soaring living costs, it could be masking a deeper financial problem. Before signing on the dot

Parents in their 60s want a reverse mortgage after a heart attack — but there may be smarter moves

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